Whitbread Withdraws Its Bid
For Allied Domecq Pubs Unit

LONDON -- Whitbread PLC withdrew from the bidding battle for Allied Domecq PLC's pubs unit, opening the way for rival bidders Punch Taverns Ltd. and its partner Bass PLC to clinch the deal.

The decision follows a surprise ruling Wednesday by the U.K. Department of Trade and Industry, which referred Whit bread's bid to the Competition Commission for further review. The DTI said the proposed acquisition had raised competitive concerns...